Deadstock items refer to unsold inventory that remains on your shelves for a long time and starts draining your valuable resources. Too many dead stocks will take up a place for top-line selling items. Thus, it is a must to clear the dead stock and to free up space to increase the potential of growth and revenue.
There are various ways to dead stock management and clear them out. Here are a few ways that are useful and practical to get rid of dead stock inventory.
1. Offer discounts
One common trick to offload your stock is to offer a discount. Showcase your discount code on the homepage or relevant landing pages so that visitors can always see it. You can also send a message to your existing customers attached with a personalized code. After all, a tactful application ensures expected returns.
- Announce offers for a limited time. This strategy never fails. There is an urgency created in the buyer’s mind and you get to sell your deadstock items.
- Giving higher discounts with higher quantity. Offering a minimum discount on individual items and a higher discount on multiple purchases works perfectly.
One last note: though it’s effective to clear dead stock, don’t overuse discount offers. This might leave a doubt regarding your product quality. Plan discounts occasionally and strategically to exert the best impact.
2. Sell in bundles
Combining your dead stock into a package and selling it with discounts ensures a warehouse clearance. Bundling products are effective in the sense that it increases customer satisfaction for receiving extra items.
Some powerful bundling ideas are:
- Bundling identical products. The best strategies are to bring together items sensibly. For instance, 3 storage containers will sell fast, but not 3 chopping boards.
- Bundling complementary products. Identify products that complement each other and make a deal to boost sales. For instance, a hard disk, and its casing, or a wireless keyboard and its mouse.
- Bundling not-so-popular products. Bundling less moving items helps clearing out the stock. For instance, sell no-demand nail colors with nail removers.
3. Giveaway or donate
Giving away is like distribution or giving it cost-free. Everyone loves free stuff. Besides getting risks of dead stocks, this gift also fosters your brand engagement and leaves a positive brand image. When well-executed, it might incentivize customers to get more from you in the future.
On the other hand, some retailers realize your dead stock has some value to a not-for-profit or charity organization. In this case, donate your items would be a good idea. Donating generates goodwill and by documenting with receipts the transaction ensures tax favor.
4. Send back to the supplier
Check if you can return the dead stock items to your supplier. Go through the returns policy. If you have any trouble in moving the stock, and the stock is not very old, you may check with your supplier to move it elsewhere. It may be a small loss to bear within returning to suppliers but is better than managing the dead stock.
Deadstock is a worry for every retailer. If you are facing this issue, then measures to clear dead stock should be a priority. Try these tactics and tell us what you think!